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One component of the Patriot Act of 2006 was the "Combat Methamphetamine Epidemic Act", which prohibited the over the-counter sale of cold medicines that contain pseudoephedrine (which is commonly used to make meth). Ceteris paribus, what is a likely impact of this Act in the market for meth?
a) An increase in the supply of meth and a decrease in meth prices.
b) A decrease in the supply of meth and a decrease in meth prices.
c) An decrease in the supply meth and an increase in meth prices.
d) An increase in the demand for ephedrine, an alternative input to meth
Arian is about to borrow $2,000 from his uncle. He has an option to repay the loan at the end of year 5 with 7.55% simple interest per year or with 8.4% interest per year, compounded every 6 months. What is the difference of the total interest paid o..
comparing investment criteria mario brothers a sport producer has a new idea for an exploration sport. it can market
Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold’s doughnuts. It turns out that Donald’s preferences are quasilinear, represented by the utility function U(d, s) = ln d + s, where d is the number of dough..
1. you are a commuter student at a local university. because of the steep rise in gasoline prices your parents decide
Abe, Betty and Charlie are the only three students in my graduate Public Finance class and I am trying to determine how many office hours to hold per week for this class. Since my office and blackboard are reasonably large, Suppose office hours don't..
Illustrate what is the firm's profit maximizing output level. Is the industry in long-run equilibrium.
One of your friends uses the terms ethics and morality interchangeably. You do not think this is correct. How would you explain the difference between ethics and morality? Provide an example of morality and one of ethics in your explanation.
Illustrate what problems would occur if the managers of each division were given incentives to maximize each division's profit separately.
Equivalent to selecting the output where the spread between total revenue and total cost is greatest.
Explain a worker’s labor-leisure choice associated with a wage decrease (assuming non labor income does not change). Illustrate the income and substitution effect associated this wage change on an appropriate graph. Label all curves and axis.
Returning to question 2, suppose the government put a tax on soda of $.50 per can to be paid by consumers. Graph the before and after tax supply and demand curve. What is the new ewuilibrium price and quantity?
Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.
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